Report of the Board Annual General Meeting 12th June 2014 Contents Executive Summary 3 1. Report on EBA Activities in 2013 and outlook for 2014+ 5 1.1 Report on work streams 5 1.2 Marketing and communications 8 1.3 Changes in the Board of the Association 9 1.4 Changes in EBA membership 11 1.5 Outlook for 2014+ 11 2. Financial situation, P&L statement as of 31st December 2013 17 2.1 Overall expenses incurred in 2013 17 2.2 Revenues in 2013 18 2.3 Income tax and results for 2013 20 2.4 EBA budget for 2014 20 2.5 Projected revenues for 2014 21 Appendix 1: 23 Accounts as of 31st December 2013 23 Appendix 2: 24 List of EBA Full Members 24 List of EBA User Members 26 List of EBA Associate Members 29 layout: www.quadratpunkt.de photo credit: © fotolia.com / Julien Eichinger 2 Euro Banking Association ANNUAL GENERAL MEETING // 12th June 2014 // Report of the Board Executive Summary As a community of like-minded European payment practitioners, EBA continued to capture the demands of its members and the wider payments industry throughout 2013. The activities undertaken in pursuit of the overarching strategy for the Association evolved during the year to reflect changing market realities. The EBA has a very simple set of objectives. To serve its members by delivering value in three strategic pillars, each designed to deliver benefits to their wholesale and retail payment divisions. Each strategic pillar is reflective of specific work initiatives. 1. Thought Leadership – to help members develop policies, strategies and roadmaps for rapid and complex payments change. 2. Knowledge and Research – delivering collective insights that can be shared by members at low cost. This pillar includes: 4 Innovation Working Groups designed to develop market knowledge and conduct research into specific focus areas, such as electronic invoicing, supply chain finance and electronic alternative payments. 4 Regulation and Compliance Working Groups and Round Tables to help members understand the impact of new regulatory and compliance requirements for transaction banking and payments. EBA has produced guidance documents summarising and explaining the requirements of the SEPA Migration End-Date Regulation and describing their impact on the business of the banks and their customers. The Association further hosts the SEPA Migration Action Round Table (SMART) which is geared at bringing clarification to SEPA migration-related issues and defining industry best practices to support banks in their interbank and intra- bank handling of SEPA payments. 4 Industry dialogue by drawing on members’ feedback in order to provide a prac- titioner’s perspective to the key EU stakeholders and to seek clarification on a number of issues, thereby contributing to a constructive dialogue between the legislators and the payment/banking industry. The Association feeds into many industry bodies such as the European Multi-Stakeholder Forum on e-invoicing, the Global SCF Forum of the International Chamber of Commerce, the Payment Systems Market Expert Group (PSMEG) of the European Commission and various European Payments Council (EPC) working groups. 3. Educational Services – to assist its membership in developing a better understanding of the payments environment by providing professional education and networking opportunities. While the payments landscape has evolved rapidly over the past decade, due to a flurry of innovation and regulation, expansive growth in electronic payments and the inclusion of 3 Euro Banking Association ANNUAL GENERAL MEETING // 12th June 2014 // Report of the Board new market entrants, industry research indicates that the next decade will yield a period of even faster changes. Throughout 2013, EBA has built on its reputation of successfully identifying issues of com- mon interest and effectively brokering constructive dialogue. The increasing complexities of the industry and the emergence of non-traditional players required open collaboration and information sharing between service providers and financial institutions. Recognising these trends, EBA embarked on a comprehensive exercise to develop a longer-term strategy and positioning that should ensure that the EBA value proposition continues to serve the needs of its diverse membership and their end customers. Hence, a major focus of the EBA’s activities in 2013 was placed on generating more knowledge on and a better understanding of emerging industry issues. As such, the EBA Board pursued its reflection process with regard to the future payments and transaction banking land- scape. The extended scope of the exercise included not only supply chain finance, but also electronic and alternative payments. The aim was to assess the market situation, to under- stand the potential needs of the banks in the co-operative space, and to evaluate whether and how the Association could provide new value in these areas. EBA also supported its member banks in understanding and meeting the latest compliance requirements for SEPA payments. To this effect, the Association continued to closely follow the evolution of the SEPA Migration End-Date Regulation and also provided a practitioners’ perspective to the dialogue between the legislators and the payments industry on this matter. Furthermore, EBA’s thought leadership and educational activities constituted again an important work stream in 2013. In its eight year, EBAday presented itself as a leading conference and exhibition on pan-European payments and transaction banking matters. The EBA Summer and Winter Schools are also well-established and continued to attract many delegates from all corners of Europe. 4 Euro Banking Association ANNUAL GENERAL MEETING // 12th June 2014 // Report of the Board 1. Report on EBA Activities in 2013 and outlook for 2014+ 1.1 Report on work streams In 2013, the commitment and involvement of the EBA membership have allowed the Asso- ciation to pursue a number of activities. Carry out research, facilitating exchange of experience and growing expertise by: 4 providing the EBA community with insight and expertise on emerging subjects such as e-invoicing, supply chain finance, electronic and alternative payment methods; 4 delivering two educational seminars per year, where high-level speakers from major banks, consultancies, law firms and universities share their expert knowledge and understanding of the pan-European payments business with senior level staff at member banks and associate members; 4 growing EBAday into a key payments conference and exhibition in Europe, delivering the latest information on industry developments in co-operation with our bank sponsors. Support banks’ compliance with regulatory requirements in the area of payments by: 4 updating EBA members and associate members on the ongoing European integration and harmonisation processes in the clearing and settlement of payments; 4 analysing and explaining the practical implications of the SEPA Migration End-Date Regulation and issue market guidance. 1.1.1 E-invoicing and supply chain finance Over the last few years, the EBA has brought together practitioners among its mem- bers and associate members to discuss and develop concepts in the areas of electronic invoicing and more recently supply chain finance (SCF). In 2013, the Supply Chain Wor- king Group (SCWG) of the EBA published a Market Guide to SCF. The guide describes the current SCF ecosystem and analyses drivers propelling or constraining take-up and adoption of a range of financing instruments applied to open account trading. It defines and explores market opportunities for possible supply chain finance services, and identifies key risks and regulatory issues that impact the supply chain finance market. The guide also defines a common terminology for the supply chain finance. During 2013, the SCWG focused on aspects such as the corporate value proposition, co-operation between banks and B2B networks, and the Bank Payment Obligation. These areas will be covered in the second edition of the Market Guide to SCF to be released at EBAday 2014. 5 Euro Banking Association ANNUAL GENERAL MEETING // 12th June 2014 // Report of the Board 1.1.2 SEPA Migration End-Date Work Stream In March 2013, the EBA Board identified the need for a forum where practitioners would be able to discuss and solve open issues and uncertainties in relation to the implementa- tion in practice of the SEPA Regulation requirements and to the day-to-day execution of SEPA Credit Transfers and Direct Debits, especially in the cross-border space. Terms of Reference were put together for a SEPA Migration Action Round Table (SMART), a forum for banks and by banks, which is facilitated by the EBA. SMART is an infrastructure-inde- pendent forum whose activities are complementary to the work of the European Payments Council and other relevant industry bodies. In 2013, the round table has brought clarification to a number of SEPA migration-related issues and has defined industry best practices to support banks in their interbank and intrabank handling of SEPA payments. A comprehensive guide on the handling of SDD R- transactions was published at Sibos 2013 and widely distributed across the industry. The group also delivered six smaller notes with recommendations on several other issues, such as on the topic of issuing, handling and validating creditor identifiers, and a best practice guide for the set-up for SEPA command centres in the banks. 1.1.3 EBA Educational Activities In 2013, the Association organised two payments-related educational seminars on key areas such as the financial supply chain and intra-day liquidity management. As in previous years, the seminars were scheduled to assist the EBA community in developing a better understanding of the payments business by providing a wide range of professional expertise, academic content and networking opportunities. The EBA Summer School 2013 “Payments and the Financial Supply Chain – Creating Profit- able Customer Opportunities” was held in Barcelona, Spain, from 2nd to 4th July 2013. The programme included a full day at IBM’s Client Centre for Banking in Barcelona.